What is the best policy in LIC for a working girl?

Question

i want to open a policy in LIC. but my agent show me so many policies. n i m so much confused about what shud i go for. so plz give me some idea so that it will beneficial for me.

Answer 1

lic of india is introduce lot of policies.But any time ,any people suitable the only one policy is endowment policy.so u chose endowment policy.

Answer 2

There are two kinds of plans basically. One is Unit Linked Insurance policies and the other is the conventional plans like the endowment, money back, jeevan anand, jeevan tarang etc. Also you now have pure term assurance and also term assurance with money back.

the plus with the term insurance is that you get high coverage for a paltry sum of premium. the down side is that if you do not pay the premium in time the policy lapses.

then you have to revive the policies by undergoing the medical test etc. There is not much grace period to boast with.

on the other hand if you take a policies like endowment, money back, jeevan anand, jeevan tarang etc there is a good amount of grace period. SO IN THE EVENT OF YOUR NOT KEEPING UP WITH THE PREMIUM DUE DATE PROPERLY ALSO YOU WILL BE GETTING SOMETHING, MOST OF THE TIME.

the experience all over the world is that 50% of the pure term assurance policies all over the world is under lapse condition at any point of time.

Therefore only if you are sure about your financial discipline should you go for the term insurance policies.

if not choose between the traditional policies like endowment, money back, jeevan anand, jeevan tarang etc.

and the unit linked policies.

the unit linked policies invest money in the stock market and the returns are dependant on the vagaries of the stock market.

the traditional policies are invested in the bonds and debentures to a larger extent and therefore their returns will be little less.

among the traditional policies the return between the endowment, money back, jeevan policies will be almost equal.

so whichever policy you take the returns will be almost same and there is no chance that you will be led astray by your advisor from LIC.

SO GO AHEAD.

Answer 3

Please consider taking Term Assurance Plan of atleast Rs. 25 Lacs. You will get it very cheap. below 10000 p.a.

Rest of your monthly savings pl invest in Mutual Funds via the SIP route.

For more info u may write to me at [e-mail]

Answer 4

I have a slightly different view on Insurance. Why is Insurance required? So that your dependents can continue to enjoy the same lifestyle in your absence. I have a family to support, with 2 young children. If I am no more, I would want the family to get an insurance amount that allows them to continue the same level of lifestyle for atleast next 10 yrs. If my wife is also working, I would think my insurance needs would get reduced by the same proportion of our individual incomes. If I already have a house, fully paid for, and a car fully paid for, then I would think Insurance requirements can come down by another 50%, cos then only day-today living expenses are really needed! Think about that!

So first assess your situation clearly. You are a working girl, anyone dependent on you now? Maybe you help out your parents every month, say maybe Rs.10,000 monthly you send home. Calculate 10000 x12 months x10 yrs =12 lakhs. Thats the Insurance that may be useful for your parents, if God forbid, you are no more! They can set up a senior citizen account @10% interest and continue to get the same monthly amount!

Having said that, the best Insurance plan is a Term Assurance plan. Visit LIC premium Calculator, Select Anmol Jeevan, under Term Assurance Plan http://www.licindia.com/premium_calculat...

For someone 27 yr old, a 12 lakh Insurance  Term plan for 10 yrs costs just Rs. 2790, annually.  This is a fraction (mosttimes as little as 1/10th) of what other moneyback, endowment and whole life policies for the same amount will cost you. Why? because those are sold under the pretext of also giving you some investment returns. By the way, I am sure yr agent would have told you of so many options but he would have omitted to tell you of the Term Plan options. do ask him, why?? Cos' the commission is very less. A Term Plan is pure insurance, if you cop it your dependents get the money. If you don't, the money goes down the drain, just like your car insurance!

Thats the best way to do insurance. Insurance and Investments should never be mixed, so say the Gurus! Read these articles to understand, why?

Investments? Insurance? Or both?

http://www.personalfn.com/detail.asp?dat...

Insurance vs Mutual Funds

http://www.valueresearchonline.com/story...

And then you will know that the 9/10ths of premium (that you would have otherwise spent on an endowment or Moneyback policy) can be best put to use elsewhere. Even a solidly safe, zero risk investment in Public Provident Fund (PPF, you can open in any SBI branch) would compound your money at a guaranteed 8% much more than what these policies would have returned. Ask your LIC agent to match the 8% compounding returns of PPF and yr LIC agent will run away:-)

Learn the power of compounding and how best to make your money work best for you from this excellent article. There is nothing like starting early in your investing life!

Power of Compounding

http://www.valueresearchonline.com/story...

And there are other very safe instruments like 5-star reputed Mutual funds like HDFC Prudence which will compound yr money at 15% annually! read this review at

HDFC Prudence Fund Analysis

http://www.valueresearchonline.com/funds...

So don't waste your time (and money) on any Insurance policy other than a Term Assurance Plan.

Cheers! Feel free to ask follow up questions if this was too much to digest for you at one shot! Good Luck! Become a more informed investor!

Answer 5

Go in for Jeevan Anand or Jeevan Tarang both whole life policies which cover your entire life.

good luck

[e-mail]

http://www.geocities.com/pnkmurthy/lic.h...

Answer 6

Hi, first try to find out if you need insurance or investment? If you are only interested investment then my suggestion would be to go for a well diversified equity mutual funds with a long  term perspective. Though mutual funds carry an element of risk, in longer term say above 10 years, it will give you good returns. If your requirement is insurance as well as investment then you can go for unit linked insurance plan. Be sure to read all the terms and conditions before investing in ULIPs.

http://www.investorcamp.blogspot.com

Answer 7

This link may help..